Ontario Considers Privatizing Lottery, Liquor

Proceeds would go toward plugging the province's $20 billion deficit.

June 24, 2010

TORONTO - Ontario Premier Dalton McGuinty said his province is considering privatizing parts of its liquor, lottery, and electricity corporations, The Canadian Press reports.

McGuinty said the move is one of necessity, as the cash-strapped government seeks to consider all viable revenue producing options.

As a result, Ontario is looking at selling portions of Ontario Lottery and Gaming, the Liquor Control Board of Ontario, Hydro One, and Ontario Power Generation. No final decision has yet been made.

"I think we have a responsibility to look at these things [but] no final decisions have been made," McGuinty said. "Nothing's coming to cabinet in the near future, but we will be continuing to take a careful look at this."


Ontario's budget deficit is hovering around $20 billion (CDN/US) this year, a shortfall that McGuinty said must be addressed in order to pay for improvements to health, education, and government programs.

In order to move forward, the province would create a new corporation that would oversee sale of the assets, which include a portion of three nuclear power plants, electrical transmission lines, more than 600 liquor stores, as well as casinos, slot machines, and lotteries.

McGuinty tried to reassure Ontario residents that any sale would come only after much deliberation and with the assurance that the return on investment would be favorable.

"We're not going to move ahead with anything of any kind, in any way shape or form, unless it serves the long-term interests of the people of Ontario," McGuinty said. "It's a big step and that's why if we do take it, we will not take it lightly."

Organized labor opposes privatization plans, and was planning to protest against the proposal.

"Together, the four Crown corporations earn more than $4 billion a year in pure profit for Ontario taxpayers, not counting the taxes they collect," said Warren Thomas, president of the Ontario Public Service Employees Union. "Surrendering our assets and the income from them will rob our children of the revenues they need tomorrow. It's short-term gain for long-term pain, and it's a bad, bad idea."

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